Nippon Hume Corp. (5262) AI Stock Analysis

• Market Cap: ¥80.77B
• Dividend Yield: 1.23%
• Average Volume (3M): 872.78K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.91
• Revenue Growth: 1.89%
• EPS Growth: 16.71%
• Country: JP
• Employees: 552
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 54.45
• Shares Outstanding: 29,347,500
• 10 Day Avg. Volume: 479,210
• 30 Day Avg. Volume: 872,780
• PEG Ratio: 0.25
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -78.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,517.00
• Price Target Upside: 31.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥4,517.00 ▲(31.69% Upside)

Nippon Hume Corp.'s stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and financial stability. However, challenges in cash flow management and a high P/E ratio weigh on the overall score. The technical analysis indicates bullish momentum, but caution is advised due to overbought signals.

Nippon Hume Corp. Business Overview & Revenue Model

Company Description

Nippon Hume Corporation designs, manufactures, and sells concrete secondary products in Japan and internationally. The company offers pipeline products, such as hume tubes and synthetic steel pipes, box and arch culverts, assembly manholes, precast joint grooves, wellman products, jip pipes, propulsion pipes, optical fiber compatible products, and antibacterial concrete products; concrete piles; RC segments and FN fittings; and PC and composite wells, and press casts and PRC hollow piers. It also provides multi-arch divided systems, precast guard fences, EMC wall rails, and wall railings; and valve boxes, precast retarding basins, and eco concrete products, as well as optical fiber cables. Further, the company is involved in the construction contracting, and civil engineering and telecommunications works; sale of concrete products and big agents; sports business; manufacture, sale, design, and equipment construction of deplant deodorization system; maintenance of buildings; manufacture and sale of formwork for concrete products; real estate business; laying business; and pipeline diagnosis business. The company was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Hume Corp. generates revenue primarily through the production and sale of concrete-based construction materials. Its key revenue streams include the sale of concrete piles, which are used in foundation work for buildings and other structures, and concrete poles and pipes, which are crucial for utility and infrastructure projects. The company benefits from strong industry demand driven by urban development and infrastructure maintenance. Additionally, Nippon Hume may engage in strategic partnerships with construction firms and government bodies, contributing to consistent demand and long-term contracts that enhance its revenue stability.

Nippon Hume Corp. Financial Statement Overview

Summary

Nippon Hume Corp. demonstrates strong revenue growth and robust financial stability with a low debt-to-equity ratio and high equity ratio. However, cash flow management needs improvement, as indicated by negative free cash flow and a low operating cash flow to net income ratio.

Income Statement

Nippon Hume Corp. shows a strong revenue growth trajectory, with a consistent increase over the years. The company achieved a net profit margin of 8.22% in the latest annual report, indicating solid profitability in the construction industry. The gross profit margin of 19.60% and EBIT margin of 5.45% are commendable, although there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.02, suggesting minimal financial leverage and low risk. The equity ratio is robust at 74.45%, underscoring the company's stable financial structure. However, the return on equity of 7.15% indicates moderate efficiency in generating returns on shareholder investments.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, which was negative in the most recent year. The operating cash flow to net income ratio of 0.29 suggests potential issues in cash conversion efficiency. Despite these challenges, the company has maintained a reasonable free cash flow to net income ratio over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.09B	37.06B	33.73B	31.88B	29.50B	30.45B
Gross Profit	7.07B	7.26B	5.89B	5.37B	5.56B	5.51B
EBITDA	4.49B	4.60B	3.30B	2.76B	3.50B	3.30B
Net Income	2.97B	3.05B	1.91B	1.64B	2.14B	2.13B
Balance Sheet
Total Assets	57.62B	57.24B	62.08B	54.98B	52.12B	50.42B
Cash, Cash Equivalents and Short-Term Investments	11.74B	12.75B	14.39B	12.46B	13.07B	12.33B
Total Debt	3.02B	855.03M	1.51B	1.07B	982.03M	928.05M
Total Liabilities	13.38B	14.16B	20.48B	16.78B	15.19B	14.40B
Stockholders Equity	43.76B	42.61B	41.13B	37.90B	36.63B	35.69B
Cash Flow
Free Cash Flow	0.00	-596.51M	2.07B	-37.02M	501.88M	2.89B
Operating Cash Flow	0.00	897.21M	2.77B	649.98M	972.88M	3.60B
Investing Cash Flow	0.00	36.60M	-121.63M	-757.59M	561.83M	-1.16B
Financing Cash Flow	0.00	-2.53B	-790.56M	-519.52M	-823.73M	-473.46M

Nippon Hume Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3430.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5262, the sentiment is Positive. The current price of 3430 is below the 20-day moving average (MA) of 3725.77, below the 50-day MA of 3430.90, and above the 200-day MA of 2218.07, indicating a neutral trend. The MACD of -36.54 indicates Positive momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 17.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5262.

Nippon Hume Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	79 Outperform	¥11.53B	12.36	―	3.96%	-2.90%	-24.21%
6485	76 Outperform	¥30.09B	10.51	―	4.56%	-1.06%	58.50%
5273	68 Neutral	¥121.28B	14.11	―	1.79%	8.66%	12.34%
5262	66 Neutral	¥80.77B	26.01	―	1.23%	1.89%	16.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7943	61 Neutral	¥100.46B	53.45	―	4.12%	1.05%	-76.91%
5337	54 Neutral	¥19.32B	16.78	―	―	-11.27%	―

Nippon Hume Corp. Corporate Events

Nippon Hume Celebrates 100th Anniversary with Special Dividend

Nippon Hume Corporation announced a commemorative dividend in celebration of its 100th anniversary, reflecting its gratitude towards shareholders. The annual dividend per share for the fiscal year ending March 2026 will be 44 yen, including a 6 yen commemorative dividend, highlighting the company’s commitment to shareholder value.